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Key Enterprises Borrows $12,000 for a Short-Term Purpose

Question 40

Multiple Choice

Key Enterprises borrows $12,000 for a short-term purpose.The loan will be repaid after 120 days,with Key paying a total of $12,400.What is the approximate cost of credit using the APR ,or annual percentage rate,calculation?


A) 3.33%
B) 4.00%
C) 10.00%
D) 11.75%

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